Pot shop licensees looking at retail space in Southampton 

A Manhattan couple licensed to launch a recreational marijuana dispensary on Long Island hopes to begin delivery service in January and open a shop in Suffolk County by April.  

Marquis Hayes, 42, a chef, and Kim Stetz, 54, a psychotherapist, said they've been scoping out opportunities in the towns allowing dispensaries, looking at retail space in Southampton and introducing their business, Keep it a 100 LLC, to Suffolk County farmers and dignitaries. 

The couple won one of seven regional retail licenses issued by the state last month. The other six licensees haven't responded to repeated requests for comment or couldn't be reached by Newsday. 

Hayes and Stetz submitted an application with veterans of the cannabis industry from other states: Christina B. Johnson, founder and CEO of the Washington D.C.-based Rooted Therapeutics; and Rabbi James Q. Kahn, executive director of Liberty Cannabis Cares, the corporate responsibility arm of Maryland-based Holistic Industries. 

The group applied through the Keep it a 100 LLC, but will likely operate under a yet-to-be determined name, Hayes said. 

A 'destination point'

He and Stetz said they're hoping to debut a retail space sometime between mid-February and April. Eventually, Hayes, Stetz and their partners envision a $10 million to $12 million development centered around the dispensary that may include a nearby restaurant and a place to enjoy art.

"We want to create this destination point," Hayes said, adding that, wherever Keep it a 100 lands, the business will enhance the surrounding community. "We're creative people, so we're trying to figure out what the town wants and what the town needs, so we can help get closer to it." 

"We're really excited," said Hayes, who believes he's one of the first African Americans licensed to operate on Long Island. "We want to take it seriously and be one of the first faces in the game to do it correctly."

The state is reserving the first 150 retail business licenses for entrepreneurs who were convicted of — or are related to someone convicted of — an offense under the old marijuana laws.

Regulators have so far issued 28 of these "conditional" licenses, which are designed to help set up those who bore the brunt of the state's inequitable drug enforcement practices. Black New Yorkers were 15 times more likely than their white counterparts to be arrested for cannabis over the past three decades, despite both groups using the substance at similar rates, state regulators said. So far, 19 of the 28 business licenses were granted to people from racial and ethnic minority groups, and throughout the larger industry rollout, the state will prioritize applicants from communities with high marijuana arrest rates as well as women- and minority-owned businesses, regulators have said.

Hayes, who grew up in the northwest Bronx, dealt drugs and served about five years in prison on drug and other convictions. Since his release about 15 years ago, he has worked at a variety of eateries — from the Canteen restaurant on Fire Island to the Michelin-starred Benu in San Francisco. He's launched several food companies, including Brown Butter New York, which sold high-end butter to celebrities like Oprah Winfrey and Pharrell Williams.

Focus on equity

His drug conviction made him an attractive associate for those looking for a way into the New York recreational marijuana market. Through networking, Hayes and Stetz explored other potential business partners before deciding to work with Johnson and Kahn. Their commitment to equity and inclusion was key for Stetz and Hayes. 

"More than anything, they really wanted to be a part of this for social justice, not just for the money and the profit," said Stetz, who has a background in yoga and meditation.

Hayes and Stetz founded Recipe for Humanity, a nonprofit agency that helps formerly incarcerated and otherwise marginalized people across the nation build entrepreneurship skills and find jobs. Participants have worked for a catering company run by Recipe for Humanity and may potentially help staff the dispensary. 

The couple was drawn to Long Island because Stetz has family in the region and Hayes has culinary connections in the Hamptons. They recently met with representatives of the Shinnecock Nation, which is working on setting up a cannabis operation and dispensary, and reached out to other government officials. The pair toured properties in Southampton and met with local farmers.

The state set up a social equity fund initially tasked with finding locations by September that could be leased to conditional licensees. Just one dispensary spot in Harlem has been announced and regulators are now saying businesses may start by delivering to consumers.

Hayes and Stetz said they're independently hunting for space in case the legwork improves their prospects.

By Sarina Trangle

sarina.trangle@newsday.comSarinaTrangle

Sarina Trangle covers affordability and cost of living issues and other business topics. She previously worked as an editor and reporter at amNewYork.